By Al Edwards, Business co-ordinator
Clarke and Jarrett
THE country's leading mutual building society, Jamaica National Building Society (JNBS) recorded yet another positive financial year characterised by assets of $28.7 billion, 491,919 savings accounts and made over 10,600 loans in a year.
This was attained against the background of ever increasing competitors with large parent groups coming on to the market, a more stringent regulatory environment and a financial sector recovering from extreme trauma not to mention a sluggish economy.
For the financial year 2001/2002 JNBS registered net interest income of $1.53 billion, unrealised foreign exchange gains of $83 million and contributions by its subsidiaries of $227.8 million. At the end of March 2002, the Group's net surplus before tax stood at $1.01 billion and after tax at $782 million.
JNBS now has assets of $28.7 billion making it the largest indigenous building society and a significant player in the local banking sector.
At March 31,2002 a strong $1.8 billion or 10.2 per cent increase in the Society's savings fund, which includes retained interest income on saving balance underpinned this performance.
It's savings funds balance currently stands at $19.6 billion up on 2001's figure of $17.7 billion. With capital and reserves of $4 billion the Group foundations and its ability to safeguard and protect saver's funds bodes well.
Deputy chairman Oliver Clarke addressing JNBS's Annual General Meeting held at its Constant Spring Road headquarters in Kingston on Wednesday said: "We now have 23 branches throughout the country and during the year opened two new ones, in Portmore and in Junction, St. Elizabeth. This year we also merged with the Jamaica Savings and Loans Building Society which was one of the three remaining mutual building societies in Jamaica which had been operating for 76 years.
"We have a strong overseas business and we have continued to try and develop it this year. We acquired a majority interest in a building society in the Cayman islands called the National Building Society of Cayman. In November of last year the Federal Reserve Board gave us approval to open up a representative office in Florida where we can explain to people the workings of the building society. We can't transact business out of it because we don't have a licence to operate a building society in the United States. However Florida has a very large and expanding population of Jamaicans that are doing very well there. We are hoping to put in place mortgage backed banking business in New York and Florida.
"There are only two mutual building societies left in Jamaica and JNBS has continued to widen the services it offers. The Jamaica National Micro Credit Company made over 9000 loans last year valued at some $285 million with a view to build up small people who are in micro enterprises. We will continue to advance the causes of thrift and homeownership throughout Jamaica."
MORTGAGES
JNBS has set itself the goal of being one of the country's leading mortgage providers. To this end special interest rates , lower down payments, lower fees and charges, home planning advice and quick underwriting have become mainstays of its operations. A total of 2,112 new loans were approved of which 1,737 were disbursed during the review period, taking the total number of mortgage loans at year end to 12,693.
This growth represents a 3 per cent increase over the loan book at the end of 2000/2001 in number of loans and a 14.8 per cent increase in the value of JNBS's mortgage loan portfolio, which ended the year at $7.3 billion. These figures include a total of 843 loans for a value of $217.7 million purchased during the year, primarily from Life of Jamaica.
JNBS's general manager Mr. Earl Jarrett points to the use of technology in bolstering its performance, in particular the use of its Pheonix system and in its money transfer business.
"We have been working very hard to put in place a sales culture at JNBS. We have had to change our approach to business particular with competition coming from a number of new players. Our aim is to improve on assets under management.
"Our enhanced JNBS/NHT mortgages enables customers to combine their NHT borrowing with Jamaica National to access 90 per cent financing of the value of the purchase price of their chosen home."
Jamaica National is one of the strongest financial institutions operating in Jamaica today. In fact, out of the 25 banks, building societies and financial institutions licensed under the Financial Institutions Act, JNBS is the fourth largest in terms of assets, the third largest in deposits, and the third largest in terms of reserve funds and capital.
